Stock market trading strategies
Stock market trading strategies. Tracking the trend.
trading strategies in the stock market
Judging by the title, you can understand that this trading strategy is based on trendiness. She is waiting for the desired direction of price movement to further open positions in the direction of the current trend of domination.
Human psychology is such that the market gives rise to the set of traders involved in the work. Settlement of transactions in the market pushes processes, thereby stimulating growth. As a result, organized continuation of the trend. And to make the trend, it is important not to miss the birth of a new trend.
This will help us trendsledyaschie main signals:
Stock market trading strategies - Strategy breakdown.
The theory behind this strategy is simple and intuitive. The market's ability to reach the next maximum or minimum sends a potential to continue the trend in the direction of the breakdown.
Stock market trading strategies - Strategies using moving average.
In the transition from the downward trend in the upward as well as vice versa, MA curve intersects uniquely pricing schedule. And based on this signal, using a moving average. In an uptrend, the price crosses the moving average of the upper limit down, and the top-down - on the contrary. Point of intersection of the line and moving average prices are trading signal.
Trading strategies in the stock market against the trend.
They are based on the expectation substantial price movements and following this opening position in the opposite direction of the trend. This tactic is based on the expectation of a market correction. The share of risk in such a strategy more than the previous. Therefore, it is recommended for experienced traders. But such a strategy for beginners is to abstain.
In the deal on such a strategy are a call to action divergence oscillators. Also as a signal of overheating shares may serve strongly "overbought" stocks. In the event of such signals need to be prepared for the fact that the motion to fix the shares in the opposite direction. By the time the shares overheating when this tactic ideal signal. With such tactics ideal signal at the time of overheating shares, plus a combination of attachment of emphasis in the level of resistance.
Profitable Trading Act reads as follows: acquire at minimum, and sell at the maximum. Since this law is fundamental, for many traders countertrend trading strategies in the stock market is often quite attractive.
In contrast to the trend-following systems that have the ability to samokorrektirovke in systems of against unlimited losses can not be excluded. From the above it can be concluded that all the systems must comprise of against the protective stop.
Countertrend systems have one undeniable advantage. Using them the opportunity for a great diversification in the application of both trend-following systems. In other words, trend-following system are mutually correlated with countertrend. And it is clear that trade with the two systems less risky.
Stock market trading strategies. Tracking news
The essence of this strategy - monitoring events in the world, tracking news of the overall market and the market within the same industry or even company. Events are considered the financial statements for a certain period of time (year, quarter) for shares news, news on a particular market sector, macroeconomic indicators of the economy.
For example, if we consider the U.S. market, you can use the calendar statistics, track records and so prepare for all news.
Thus, we examined the basic trading techniques and strategies through which a trader can make a profit in the process of working on the stock market.
Stock market trading strategies. Channel trading strategy.
Lines indicating the limits of the channel - is support and resistance levels. Commercial channel - is buying and selling up and down from these levels. Performing well this tactic sideways - flat. But if the trend is down or bottom-up, the tactics of trading in the channel completely inapplicable.
In the opening position is recommended to follow these tactics:
- With support and resistance levels define the channel boundary, where there is movement of the market.
- As soon as the price reaches a significant boundary line resistance and bounce off it is necessary to open a sell position. If the price bounces off the support line, then open a buy position.
In this tactic has its drawbacks and advantages.
Disadvantage: the essential and often unjustified losses in the breakout line of the channel. To minimize or prevent negative consequences need to successfully install protective levels of Stop Loss. At these levels, provided the closing of unprofitable positions if the market starts to move in the opposite direction from the planned earlier.
Advantage: if a sideways trend continues, by opening and closing positions can maximize profits.
Stock market trading strategies. Determination of price behavior.
This type of trading strategy in the stock market are used in certain models - Forex patterns. They are formed by the market just before you make a powerful new movement or change direction. In technical analysis, described in more than one hundred of patterns. But trade is not used more than a dozen major brands. They include the flag, triangle, candlestick patterns, the second and third peaks, etc.